The facility, in Auvere, Ida-Viru County, cost €353 million to build.

Durejko said the company is working to get the new Enefit 280 oil plant operational in the first half of this year.

"We are aiming for a start-up in the first half of the year. There are four months left. When will we reach full capacity? There are several uncertainties, so I won't give a specific timeframe," he said.

Durejko acknowledged that launching the plant will require some significant fine-tuning.

"Based on previous experience, there is a considerable amount of work to be done in fine-tuning the plant's operation, but we hope to overcome these challenges. At present, this is our best projection," the CEO went on.

The state-owned energy company has already written down the value of the oil plant by €107 million but does not expect further write-downs.

Presenting its financial results on Friday, Eesti Energia announced that it had reduced the value of the Enefit 280 oil plant under construction due to delays in commissioning and the environmental permit granted for it, which is valid until 2035.

If the plant becomes operational as planned, no further write-downs will be needed, according to Eesti Energia CFO Marlen Tamm.

The mechanical completion of the plant — referring to the installation of equipment — is scheduled for early 2025, followed by testing and the actual start of operations.

As of the end of last year, 70 percent of the plant's equipment still required adjustments before testing could begin.

Eesti Energia is also weighing up the future of its older oil plants.

The company is considering shutting down its Enefit 140 plants, which face environmental compliance challenges and would require significant investments to continue operations.

Durejko described the decision as a key investment consideration.

He said: "We have an important investment decision to make—whether to invest in upgrading the older oil plants or to operate only the two new ones."

If the older oil plants remain in operation, Eesti Energia's shale oil production would rise. If not, then once the new Enefit 280 plant is completed, production levels would stabilize.

Despite the setbacks, oil production remains profitable for Eesti Energia, the company said.

According to the company's annual report, the new plant is ultimately expected to recoup its construction costs.

Durejko also said that Eesti Energia intends to operate the plant beyond 2035, though this cannot be accounted for in financial reporting at this time.

Under the environmental permit, the new plant is allowed to operate until 2035.

Eesti Energia laid the cornerstone for the Enefit 280 oil plant in November 2021, with completion originally scheduled for last year.

The project has faced delays beyond just construction challenges, including disputes with environmental activists.

Shale oil has multiple applications, including in the chemicals industry, while it can also be used as a fuel at power stations. As a fossil fuel, however, this conflicts with EU climate goals.

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